QUOTE AND NEWS
Benzinga  Jan 22  Comment 
Analysts at Union Gaming initiated coverage on Wynn Resorts, Limited (NASDAQ: WYNN) with a Buy rating. The target price for Wynn Resorts is set to $175. Wynn Resorts shares have dropped 30.39% over the past 52 weeks, while the S&P 500 index...
TheStreet.com  Jan 21  Comment 
NEW YORK (TheStreet) -- Shares of Wynn Resorts are slipping, down 1.77% to $139.51 in pre-market trading Wednesday, after the casino resort company had its rating lowered to "neutral" from "buy" by analysts at Nomura this morning. Analysts at...
Benzinga  Jan 21  Comment 
Analysts at Nomura downgraded Wynn Resorts Ltd. (NASDAQ: WYNN) from Buy to Neutral. The price target for Wynn Resorts has been lowered from $209 to $149. Wynn Resorts shares have dropped 31.97% over the past 52 weeks, while the S&P 500 index...
Motley Fool  Jan 17  Comment 
Casino companies gamble billions when building Las Vegas mega-resorts, but who has done the best job of turning its resort into cash flow?
Market Intelligence Center  Jan 14  Comment 
For a hedged play on Wynn Resorts Ltd (WYNN) MarketIntelligenceCenter.com’s algorithms selected the Mar. '15 $149.00 covered call for a net debit in the $141.56 area. That is also the break-even stock price for the covered call. This trade will...
Motley Fool  Jan 12  Comment 
We asked three contributors where they see bargains on the stock market. Their answers might surprise you.
Benzinga  Jan 8  Comment 
Deutsche Bank cut its price targets Thursday on Wynn Resorts, Limited (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE: LVS) due to Macau exposure. Analyst Carlo Santarelli maintained a Buy rating on Wynn Resorts, but lowered the price target...
SeekingAlpha  Jan 7  Comment 
Benzinga  Jan 3  Comment 
On CNBC's Stock Pops & Drops, Jim Lebenthal said that Wynn Resorts, Limited (NASDAQ: WYNN) dropped 1.26 percent on poor results from Macau. He would stay away from the stock and focus on domestic companies. Tim Seymour commented on a 12.04...




 

Wynn Resorts, Limited (NASDAQ: WYNN) develops and operates luxury casino resorts. The company serves Las Vegas, Nevada and Macau, China. In Las Vegas, the company owns the Wynn Las Vegas and Wynn Las Vegas Encore properties while in Macau, the company owns Wynn Macau and Wynn Macau Encore.[1] All of these properties are marketed as luxury resorts[2] and, in Las Vegas, WYNN likes to position its resorts as the most expensive in the city.[3] In 2010, the company earned $4.18 billion in revenue and $316 million in net income.

Company Overview

Business Segments[4]

  • Las Vegas (31% of total revenue, 70% of assets, 57% of costs)
  • Wynn Macau (69% of total revenue, 30% of assets, 43% of costs)

Business Growth[5]

Fiscal Year ended December 31, 2010

  • Revenue increased to $4.18 billion from $3.05 billion in 2009.
  • Net income increased to $316 million from $39.1 million in 2009.

Trends and Forces

Wynn has big exposure to the Macau gaming market

Due to the company's big investments in Macau, the company is both receptive of booms in the emerging markets and susceptible to the busts.The Macau gaming market is largely dependent on the Chinese market and economy. If the market worsens as it had in the 2008-2010 recession, Wynn Resorts could see its bottom line affected accordingly.

Wynn insists on keeping full-time staff employed

During downturns, Wynn's plan is to preserve employment includes pay cuts, reduced work weeks for its employees and suspend 401(k) matching. CEO Steve Wynn believes that eliminating job security worries amongst its employees is paramount to maintaining strong human capital, a driver of the consumer's experience at any Wynn casinos.[6]

Government Regulation and Gaming Laws

Macao's gaming laws and gaming taxes are relatively young and have few precedents, making them quite vulnerable to sudden change. China has a large and affluent middle class, but for many years travel and currency restrictions made it difficult and undesirable for visitors to come to Macao. While the Chinese government relaxed many of these restrictions when it first granted gaming licenses and ended its state-run gaming monopoly, there is no sign that this deregulation trend will continue.[7]

Competition

Wynn Resorts faces intense competition in both Las Vegas and Macau. The company’s primary competitors include Las Vegas Sands and MGM Mirage, both of which operate in the Las Vegas and Macau markets. Wynn Resorts also faces competition from privately-held Harrah’s Entertainment, Boyd Gaming, and Native American casinos.

  • Las Vegas Sands: Like Wynn, LVS has properties in Las Vegas, Macau, Bethlehem in Pennsylvania and Singapore.[8]
  • MGM Mirage: Operates casino resorts, golf courses, and golf clubs in the United States. MGM has a strategic alliance with the Mashantucket Pequot Tribal Nation, owner of Foxwoods Casino Resort in Ledyard, Connecticut.
  • Boyd Gaming: Owns and operates casinos in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey in addition to pari-mutuel jai alai facility in Florida, two travel agencies, and an insurance company.
  • Harrah's Entertainment: A gaming company that owns and operates under the Harrah's, Caesars and Horseshoe brand names.[9] It also owns the London Clubs International family of casinos and the World Series of Poker.

References

  1. Wikinvest SEC Filings: 2010 10-K WYNN, Page 3
  2. John Dobosz (February 26, 2009). Going All In For Wynn. Forbes.
  3. Oskar Garcia (February 20, 2009). Wynn Resorts to post 4Q earnings on Tuesday. Forbes.
  4. Wikinvest SEC Files: 2010 10-K WYNN, Page 102-103
  5. Wikinvest SEC Files: 2010 10-K WYNN, Item 6: Selected Financial Data
  6. Wynn Resorts Ltd. Q3 2008 Earnings Call Transcript. Seeking Alpha (October 30, 2008).
  7. MacauCasinoWorld.com: History.
  8. Wikinvest: Las Vegas Sands
  9. Corporate Profile. Harrah's Entertainment.


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